Serbia: Price review of the Serbian electricity market in Serbia

4. July 2016. / News Serbia Energy

Prices of electricity, as well as electricity market services, may be free or regulated. The final price paid by the customer includes the price of generation, price of transmission services, price of distribution services, price of ancillary services, balancing energy price, end customer supplier price, fees and taxes. Group of authors comprising Irena Savkovic, Nebojša Lapcevic and Jelena Dragovic, JP Elektromreža Srbije, in their paper presented the price review of the Serbian electricity market. As of 1 January 2013 in accordance with the Energy Law and the Market Code, liberalization of the Serbian electricity market started. The right to be supplied under regulated prices was lost, new suppliers had to be found and balancing responsibility issue had to be resolved. Thus, despite the large number of suppliers in the market in 2013, holding the license for electricity supply issued by the Energy Agency of the Republic of Serbia, end customers were supplied only by two suppliers, whereas JP EPS still maintained its dominant position.

As of 1 January 2014, further liberalization of the electricity market in Serbia continued, by opening the market for end customers with delivery points in the medium and low voltage distribution system. All final customers, except households, had an obligation to provide electricity supply, and resolve the issue of balancing responsibility. The following year, full liberalization of the electricity market started, enabling households and small customers, if they wished so, to choose their suppliers on the free market.

On the basis of the prices established on the electricity market, both regulated and free, available to the general public, it may be concluded that during 2014 there was an increase in the price or prices remained unchanged. However, this price increase has still not resulted in the complete liberalization of the electricity market in the Republic of Serbia. Full liberalization of the electricity market requires further transition from regulated to free prices and electricity price increase. This would create conditions to increase electricity market competitiveness, transmits Serbia-energy.eu